FCC Backs Off Cable Regulation

The Federal Communications Commission delayed its plan to more heavily regulate cable TV operators Tuesday evening, after the agency's own commissioners questioned data that would push through a proposal.

Some of the issues at stake for consumers, industry watchers say, are whether cable providers such as Comcast and Time Warner would have to justify more clearly to the FCC customer rate hikes before implementing them. More FCC oversight might also provide customers a choice of individual channels on an a la carte basis as apposed to the way cable companies package channels today.

At a meeting last night FCC Chairman Kevin Martin intended to expand the FCC's powers over cable companies by proving the industry had reached a large enough U.S. audience to require increased government oversight. Under what's known as the "70/70 rule" of the Cable Communications Act of 1984, when 70 percent of U.S. households have the ability to subscribe to cable TV and 70 percent of those that can actually do subscribe the FCC would be given more regulatory authority over the cable industry. This would prevent the cable industry from gaining too much power.

What killed the FCC's chances of gaining more oversight of cable companies was a failure by the FCC's five commissioners to agree on whether the conditions of the 70/70 rule had been met. While commissioners did agree 70 percent of U.S. consumers have access to cable they could not reach agreement as to whether 70 percent of those that could subscribe to cable actually do.

Chairman Martin argued the 70/70 had been met and pointed to a Warren Communications News report that the supported the claim, according to reports. Fellow commissioners insisted otherwise.

The commission did approve a plan to force cable providers to hand over the numbers of subscribers each had and the number of homes serviced between 2006 and 2007 within the next 60 days.

Cable operators don't want FCC oversight. They argue the Cable Act of 1984 is antiquated, and claim that competition from video services offered by satellite and phone companies provide consumers ample alternatives to cable and keep them in check.

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